Renewable Energy Group (REGI) Reports Q3 Loss of $0.35, Revenues Miss

Renewable Energy Group (NASDAQ: REGI) reported Q3 EPS of ($0.35), versus $0.55 reported last year. Revenue for the quarter came in at $584.4 million versus the consensus estimate of $597.08 million.

Q3 2019 Highlights

• 188 million gallons sold
• 137 million gallons produced
• Revenues of $584.4 million
• Net loss from continuing operations of $13.8 million, or $0.35 per diluted share, inclusive of an $11.1 million impairment charge related to the New Boston plant closure
• Adjusted EBITDA of $10.6 million
• Estimated net benefit of potential reinstatement of the federal Biodiesel Mixture Excise Tax Credit (BTC) of $77.0 million for the third quarter 2019, $213.0 million for the nine months ended September 30, 2019 and $450.0 million cumulatively for 2018 and the first nine months of 2019

“Our performance was satisfactory even in the face of the uncertainty around the lapsed BTC and excessive small refinery waivers, both of which contributed to compressed margins,” said Cynthia (CJ) Warner, President and Chief Executive Officer. “We generated positive adjusted EBITDA of $11 million, which does not include the potential benefit of a retroactive BTC reinstatement. Importantly, we improved our product mix by increasing renewable diesel sales and concentrating on the most profitable gallons and market placement.”

Warner continued, “We are committed to running a profitable business, with or without the BTC. Our profit improvement, growth and value creation strategies are taking root and we believe provide a foundation for success in the future."

For earnings history and earnings-related data on Renewable Energy Group (REGI) click here.

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